Marking Your Territory: Choosing a Trade Mark in China

trademarkChoosing a Chinese equivalent for your brand name can oftentimes be a challenging task.  In today’s blog post we’re taking a closer look at what you need to know when choosing your trade mark in China.  We are using the famous New Balance case to offer some tips on how to choose a good trade mark in China. 

In one of the most famous trade mark infringement case, New Balance Trading (China) – the Chinese affiliate of US sports footwear brand, New Balance – was ordered by a Guangzhou court to pay RMB98 million in compensation (equivalent to approximately EUR14.3 million), and to publicly apologise to Chinese businessman, Mr Yuelin Zhou, for trademark infringement. The trade mark in question was “新百伦”, or “Xin Bai Lun”, a Chinese transliteration of “New Balance”. This case serves as a sharp reminder of how vital it is for foreign brands to register a Chinese trade mark in China, and how cutting corners may result in high financial penalties later down the line. This article takes a look at how to best choose a Chiniese name for your brand when doing business in China.

Chinese consumer culture: why choose a Chinese name?

China possesses one third of the world’s consumers and is the largest market for luxury goods in the world. Between 2010 and 2014, European Union (EU) imports to China grew by around 12% on average annually.

Taking time to carefully consider a Chinese trade mark when importing a brand to China is important for several reasons. Firstly, because foreign brands or company names are often difficult to pronounce – or carry different meanings – in Chinese. If a company fails to provide its own Chinese name or trade mark, Chinese consumers will choose their own. Secondly, in a country where each character holds its own distinctive meaning, the characters used in a foreign branded trade mark, along with the sound, tone and look of Chinese characters, can significantly impact a brand’s reputation. Continue reading “Marking Your Territory: Choosing a Trade Mark in China” »

Practical tips for protecting your IP in China and South-East Asia

dreamstime_m_24720610Protecting your IP is extremely important when doing business in China or in South-East Asia, as inadequate IP strategy can often lead to the end of your business endeavor in both regions,  since counterfeiting and other IP violations are still commonplace in China and South-East Asia. In today’s blog post you can find some practical tips for protecting your IP in China and in South-East Asia,  allowing you to draft a sound IP strategy for both regions.

China and the majority of South-East Asian countries have recently shown considerable efforts in creating stronger intellectual property rights (IPR) protection systems and in bringing their existing intellectual property laws in line with, or closer to, international standards. However, counterfeiting, trade mark infringements and other IPR infringements remain one of the major issues both in China and in the South-East Asian region. When European SMEs enter these markets, there are some key points they need to look out for in order to ensure their IPR is effectively protected.

IP Laws are territorial, register your IP

European SMEs should be aware that IP laws are territorial (and this applies in both South-East Asia and China), meaning that IPR are only enforceable upon valid domestic registration. SMEs planning to enter the South-East Asian and Chinese markets are faced with the question of when to register their trade mark, patents or designs. The answer is as soon as a company considers internationalizing its sales and activities, they should take steps to register their trade marks and other IP in the countries of destination. Obtaining the relevant information and taking advance action is the key to effective protection. Continue reading “Practical tips for protecting your IP in China and South-East Asia” »

IP Protection Strategies in China for Start-ups

growthIn today’s blog post we are taking a closer look at how start-ups, planning to set up their activities in China or have their products produced in China,  could best protect their IP rights. You will learn more about the importance of patent protection and trade mark protection and why these types of IP are essential for the start-ups.

For small start-ups the prospect of where to even start with an IP strategy can oftentimes be a daunting task as other concerns like building a good team, structuring the company, attracting investment and developing the product tend to take up all the time and attention of the business owners. At the same time, a robust IP Strategy is crucial for business’ success when planning to enter the lucrative market of China. Besides helping the start-ups to protect their innovations from competitors, IP assets can also be a significant pull-factor when attracting investors.

Protect your inventions with patents

Patent protection in extremely important for start-ups as patents protect innovations, limit competition and help to defend against claims of infringement by other companies producing similar products. Furthermore, patents can attract investors, which is fundamental for start-ups. Thus it is important to apply for patent protection in China when planning to enter its market. Continue reading “IP Protection Strategies in China for Start-ups” »

Handling of Trade Secrets in South-East Asia: Focus on Thailand

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fgjTrade secrets are an excellent but often under-exploited means of IP protection for the SMEs. In Today’s blog post we are taking a closer look at trade secret protection in South-East Asia in general as well as in Thailand in particular. You will learn about general trade secret protection requirements and trends in South-East Asia and will get a closer overview of trade secret protection in Thailand in particular. 

Trade secrets are a highly valuable form of intellectual property that nearly all businesses in all industries and sectors possess. However, they are frequently overlooked by businesses, partly because there is confusion about what actually constitutes a trade secret. So what is a trade secret?

According to the World Intellectual Property Organization (WIPO), any confidential business information that is of considerable commercial value to businesses and that provides an enterprise with a competitive edge may be considered a trade secret. In practice, this could be:

  • sales methods
  • distribution methods
  • consumer profiles
  • advertising plans
  • pricing strategies
  • lists of suppliers and clients
  • manufacturing processes

In other words, more often than not trade secrets are the ‘know-how’ that a business builds up over time. Typically, the longer the SME is in business the more valuable its trade secrets will become, and the more its business grows the more its competitors will seek to discover this valuable working knowledge. Therefore, it is increasingly important to take steps to protect trade secrets. Continue reading “Handling of Trade Secrets in South-East Asia: Focus on Thailand” »

Intellectual Property Rights in China for SMEs in the ICT Industries

anatomy-1751201_1280ICT industry in China continues to grow and to offer promising business opportunities to European SMEs, whose top-notch technology is highly sought after in the country. in today’s blog post we are taking a closer look at IPR protection in China’s ICT industry, focusing on patent protection and  trade secret protection. The article will also offer some tips on how to enforce your rights in case of an infringement. 

China’s IPR (intellectual property rights) protection system is expanding and improving, but it remains vastly different from the European system. Accordingly, to be successful in China your business must take preventative measures to protect your intellectual property rights; one must obtain valid IPR rights in China as a minimum first step. In other words, the protection of IPR rights should be a key part of your business strategy, whether entering or expanding operations in China.

While some IPR issues are common to all types of European companies doing business in China, others are specific to the ICT industry. The China IPR SME Helpdesk outlines appropriate patent and trade secret strategies, the type of patents particularly relevant to ICT companies and suitable IPR enforcement measures. Enforcement of IPR is discussed through a case study of an IT company that has taken enforcement actions in China.

Developing a patent and trade secret strategy for China Continue reading “Intellectual Property Rights in China for SMEs in the ICT Industries” »